1. â??â??â??â??â??-is a graphic presentation of each part of the entityâ??s internal controls system.

A) Narrative Records
B) Check List
C) Internal Control Questionnaire
D) Flow Chart



2. â??â??â??â??-is mainly intended to ascertain whether the system of internal control is operating effective.

A) Surprise check
B) Analytical Procedures
C) Test of details
D) None of these



3. How many Standards on Internal Auditing are issued by the AASB

A) 18
B) 20
C) 22
D) 24



4. Objectives of internal controls can only be reasonably achieved but not absolutely due to â??â??â??â??â??

A) Inherent limitation of audit
B) Inherent limitation of internal controls
C) Inherent risk
D) Detection risk



5. The results of surprise checks

A) Are always to be included in audit report as these are always important
B) May or may not be included in audit report depending upon the quantitative nature of findings
C) Should be included in audit report if they are material and affecting the financial statements
D) All of these